By Robert Higgs
cleveland.com
(TNS)
WASHINGTON – Even if you filed your tax return for the year, the Internal Revenue Service (IRS) on Thursday warned that taxpayers should remain on alert for some common scams to avoid losing money and personal data.
Consumers need to be wary of high-pressure lines and misleading information about tax refunds, credits and payments.
“Scammers work hard to try to steal money and personal information during tax season and all year long,” the IRS said. “They pressure you for personal, financial or employment information or money. IRS impersonators try to look like us.”
Among the ploys to beware of:
- A big payday: If it sounds too good to be true, it probably is. Bad tax advice on social media may convince you to lie on tax forms or mislead you about credits you can claim.
- Demands or threats: Impersonators want you to pay “now or else.” They threaten arrest or deportation. They don’t let you question or appeal the amount of tax you owe.
- Website links: Odd or misspelled web links can take you to harmful sites instead of IRS.gov.
“Taxpayers and tax professionals should remain alert and aware of these common scams to avoid losing money, personal information or client data,” the IRS cautioned.
Social media: Fraudulent form filing and bad advice
Inaccurate or misleading tax information can circulate on social media. The IRS warns that it has recently seen schemes that encourage people to submit false, inaccurate information in hopes of getting a refund or taking advantage of a credit, such as the Employee Retention Credit and the Fuel Tax Credit.
Taxpayers should always remember that if something sounds too good to be true, it probably is.
Bogus self-employment tax credit
Promoters market this bogus scheme as a way for self-employed people and gig workers to get payments of up to $32,000 for the COVID-19 pandemic period.
Postings on social media advice tout a “Self-Employment Tax Credit” that’s really non-existent. The posts can mislead taxpayers into filing false claims.
In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify and the IRS closely reviews claims for the credits.
Online Account help from third-party scammers
Beware of “helpful” third parties who offer to help create a taxpayer’s IRS Online Account at IRS.gov. In a common scam, their real goal is to steal personal information. Taxpayers should access their account directly through IRS.gov.
Phishing and spearphishing
Watchout for fake communications posing as legitimate organizations in the tax and financial community, including the IRS and the states. These messages arrive in the form of an unsolicited text or email to taxpayers and tax professionals hoping to lure victims into providing valuable personal and financial information that can lead to identity theft.
Spearphishing is a tailored phishing attempt targeting a specific individual or group. The IRS warns tax professionals to be very careful about spearphishing because of the risk of a data breach. A successful spearphishing attack can ultimately steal client data and the tax preparer’s identity, allowing the thief to file fraudulent returns.
Unscrupulous tax return preparers
While most tax preparers provide professional service, taxpayers should be wary of shady tax professionals. Watch for common warning signs, including charging a fee based on the size of the refund. A major warning sign is when the tax preparer is unwilling to sign on the dotted line. Avoid these “ghost” preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number as required by law.
Offer in compromise mills
Offers in compromise are an important program to help people settle their federal tax debts when they can’t pay. But “offer in compromise mills” can aggressively promote offers in compromise in misleading ways to people who clearly don’t meet the qualifications, often costing taxpayers thousands of dollars.
Taxpayers should check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.
_______
©2025 Advance Local Media LLC. Visit cleveland.com. Distributed by Tribune Content Agency LLC.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: Income Taxes, IRS, scams, tax scams, Taxes
